Pricing Explained

Mr. Walter E. Williams has a good piece on that also takes issue with the charges of “price gouging” in the wake of Hurricane Katrina. It is Economics 101 continued.

“One undeniable fact is that the hurricane disaster changed scarcity conditions. There are fewer stores, fewer units of housing, less gasoline and a shortage of many other goods and services used on a daily basis. Rising prices are not only a manifestation of these changed scarcity conditions, they help us cope, adjust and get us on the road to recovery.”

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